AAVE Token Slides 14% After $140M Liquidations and Strategic Restructuring Drive Market Volatility

AAVEUSDT experienced a notable decline in the last 24 hours, falling 14.38% from 121.84 to 104.32 on Binance. This drop is primarily attributed to over $140 million in liquidations impacting 1,182 wallets on Aave V3, including a significant loan collateralized by 2.3% of AAVE’s supply. Contributing factors include asset sales by Aave’s founder and Aave Labs’ strategic restructuring, such as retiring the Avara brand and focusing on core DeFi products. Increased trading volume, up over 100%, reflects heightened market activity and volatility amid these events. Current metrics show AAVE trading at 104.32 with market capitalization estimated between $1.54 billion and $1.99 billion, and a circulating supply near 15.3 million tokens.